NAIROBI, Kenya, June 23 – Stalled development projects in counties were valued at Sh13.66 billion as of May 2026, with contractors yet to be paid Sh8.56 billion, revealing the fiscal pressures facing devolved units.
According to the Controller of Budget’s County Governments Budget Implementation Review Report, counties reported 237 stalled projects during the first nine months of the 2025/26 financial year.
The report shows that counties had paid contractors Sh5.11 billion, leaving outstanding obligations of Sh8.56 billion.
“The reported causes of project stalling included inadequate budgetary allocations, unresolved contract variations, contractor abandonment, contract termination, missing contract files and projects under investigation,” the report states.
Kilifi County recorded the highest number of stalled projects at 68, followed by Machakos County with 54, Nairobi County with 36 and Baringo County with 24.
In Kilifi, stalled projects were valued at Sh542.44 million, of which Sh473.06 million has already been paid, leaving a balance of Sh69.38 million.
Nairobi, however, has the largest outstanding liability, with unpaid bills related to stalled projects standing at Sh2.78 billion.
The Controller of Budget warned that stalled projects undermine service delivery, delay development outcomes and expose public funds already spent to value-for-money risks.
The office has urged county governments to prioritise completion of viable stalled projects, allocate adequate resources in future budgets and address contractual disputes through appropriate legal and oversight mechanisms.
The findings come amid a broader challenge of pending bills across the public sector. Earlier data from the Controller of Budget showed government agencies had accumulated Sh465.87 billion in unpaid bills by March 2026, including Sh271.16 billion in recurrent expenditure obligations and Sh194.71 billion linked to development projects.
